ISO (Internal Service
Organizations—these are also self-supporting units—e.g.
transportation, duplicating);

Grant accounts;

Gift and Foundation
accounts.

We generate a budget for each new fiscal year based on a number of
things, including our best estimates of the number of students who will enroll;
tuition increases set by the University of Minnesota system; salary increases
that are also set system-wide; and by the additional amount of central funds
the U of M decides to give us. Jacquie added that there are two key variables
that we cannot control – tuition and salaries.

2005-06

We began
the year with a cash balance in the O&M account. That yearŐs budget was
based on an estimated enrollment of 1,800 students. The actual enrollment was
1,684. Because of this and other factors, UMM overspent its budget that left
us with an overall deficit in our O&M accounts at the end of the fiscal
year.

2006-07

Our
budget for this year was based on an enrollment of 1,700 students and our 10
day count showed 1,747 students. Even though our enrollment was slightly
higher than expected, the tuition revenue dollars that came in were not as high
as we would have hoped because of the mix of credits, the mix of students
(degree seeking and non-degree seeking) and because of various tuition waivers.
We took measures to address the budget shortfall by doing the following:

-we did not
fill some open positions;

-we charged
the auxiliary units the equivalent of the Institutional Revenue Sharing
(IRS)fee, transferring those funds into our O&M accounts; and